Mining shares lead FTSE 100 recovery
The FTSE 100 index is 43.62 points higher at 7252.43, a 0.5% increase fueled by higher mining stocks including Anglo American and Antofagasta.
Richard Hunter, head of marketing at Interactive Investor, said today: “There are times when bad news can be good news.
“A record low in US consumer confidence levels has given rise to hope that the Federal Reserve can start considering a lighter touch in its approach to tightening after the likely July increase.
It also raised the possibility that the so-called “terminal rate” could approach, with the current consensus that rates will reach 3.5% by March, lower than a previous estimate of 4%.
The FTSE 250 index improved by 81.55 points to 19,205.26, up 2% for Watches of Switzerland and Aston Martin Lagonda.
Interest rate heap increases market sentiment
The rally for European markets will continue after Friday’s strong Wall Street session was followed by improved trade in Asia.
Support for China’s economy After the country’s central bank made its biggest injection into the banking system in three months, Hong Kong’s Hang Seng index rose by 2.5% and the Shanghai Composite by 1%.
The improved mood means that IG Index expects the FTSE 100 index to open 28 points higher after closing at 7208 on Friday.
US futures markets are showing higher after markets recovered at the end of last week in the hope that the peak for the Federal Reserve fund rate could come as soon as March.
The diminishing urgency for steeper Fed rate hikes has followed figures showing long-term consumer inflation expectations have returned from a 14-year high.
Friday’s rally meant the Dow Jones Industrial ended 5% higher over the week, while the Nasdaq Composite rose more than 7%.